COMMISSIONER OF INCOME TAX Vs. ASHOK TIMBER INDUSTRIES

JUDGEMENT

(1.) In this reference under Section 256(1) of the I.T. Act, 1961, we are concerned with the following question of law :

(2.) The assessee is a firm. The assessee commenced business on 27th November, 1961. The assessment year is 1963-64, for which the previous year ended on 27th October, 1962.

(3.) In the course of the assessment proceedings, the ITO found certain cash credits appearing in the books of the assessee. The explanation offered by the assessee was not accepted by the ITO. He, therefore, added these cash credits in the assessment.